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Brazilian electric power sector: morbid obesity
image credit: Rafael Herzberg
Brazilian electric power sector: morbid obesity
Industrial clients, multinational companies, for whom I consulted, point to a sad reality: Brazilian plants pay for electric energy, in USD/MWh, among the highest values in their corporate ranking.
This is a situation that has been going on for a long time! And where is the "catch"?
This question that I am asked arises because our power matrix is predominantly renewable and therefore associated with a very competitive "intrinsic" cost.
The answer I present points to a list of costs that are included without ceremony, which represent a large contribution of "fats" that would need to be "burned".
1. Unparalleled federal and state taxes
2. The cost of power theft that reaches more than 10%
3. The absence of demand response programs
4. Undersized reservoirs to mitigate fluctuations in hydrology
5. Expensive thermal plants dispatched in "dry" periods
6. State-controlled energy companies: in super fragile economic and financial situation
7. Transfer of the costs of the "duck curve" to "other" consumers
8. Subsidies that are paid by all "other" consumers
9. Official institutions (ONS, EPE, ANEEL, CCEE, etc.) do not have an agenda to turn around this situation
10. The electricity sector has historically been led by ministers involved in corruption scandals
The first step to turn around is recognizing our situation.
Rafael Herzberg
Thank Rafael for the Post!
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